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Wall Street Is Wary of The Coca-Cola Co (KO) and and PepsiCo, Inc. (PEP)

By U.S. News & World Report

The stocks of soda giants PepsiCo, Inc. (ticker: PEP) and The Coca-Cola Co ( KO) may be going flat.

On Wednesday, BMO Capital downgraded both stocks from “outperform” to “market perform.” The two stocks simply have no clear catalyst for earnings growth within the next 18 months, analyst Amit Sharma says in the downgrade note. “It’s difficult to argue for a meaningful multiple expansion from current levels, particularly given that earnings growth is unlikely to significantly accelerate in the next 12 to 18 months.”

Coca-Cola’s trailing price-earnings ratio of 32 is at its highest level of the past decade. Pepsi’s P/E ratio of 25.2 is also on the high end of its 10-year range.

[See: 9 Ways to Buy Stocks That Everyone Needs.]

Without the potential for major earnings growth, Sharma says PEP and KO would need a different catalyst to send their share prices higher. However, investors hoping that the catalyst will come via merger and acquisition deals will likely be disappointed. There have been market rumors of a potential merger between Coca-Cola and Kraft Heinz Co. ( KHC). Separate rumors have also paired Pepsi with Kraft Heinz and Mondelez International ( MDLZ) as potential merger partners.

Unfortunately, there is no “compelling strategic rationale” for any of these deals, and neither Pepsi nor Coca-Cola has given any indication it would be a willing seller, Sharma says.

One possible scenario that could keep Coca-Cola and Pepsi shares elevated would be an unforseen geopolitical disruption. If investors get more cautious about the overall outlook for the global economy, they may see the two stocks as low-risk, safety plays. The two blue-chip stocks offer investors a relatively stable investment option, and both stocks have a dividend yield of greater than 2.7 percent.

[See: 20 Awesome Dividend Stocks for Guaranteed Income.]

For now, at least, Sharma sees better beverage investment opportunities elsewhere. BMO has upgraded Dr Pepper Snapple Group ( DPS) and Cott Corp. ( COT) to “outperform.”

“DPS and COT are uniquely positioned to have upwards bias to both earnings estimates and valuation multiples as investors gain better understanding of their large, strategic acquisitions, strong management teams and likely easing of near-term operational concerns,” Sharma says.

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Wall Street Is Wary of The Coca-Cola Co (KO) and and PepsiCo, Inc. (PEP) originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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